Financiers may purchase policies for their own account or choose to be nominated as a “loss payee” under a borrower’s policy.

Coverage typically offers 90% indemnity with repayment terms of up to seven years and maximum limit of liabilities as high as $150MM per insurer for any single risk.

Why do Financial Institutions and Lenders Buy Trade Credit Insurance?

Banks and specialty lenders have become one of the largest purchasers of Trade Credit Insurance coverage in recent years. The product’s broad applicability and flexible policy wordings offer benefits to financial institutions and lenders of all sizes. Advantages conferred by Trade Credit Insurance policies include, but are not limited to, the following: